Before hiring a builder consider the following:
Have a Real Estate attorney review the construction contract before signing.
Ask for references and take the time to check them out.
Investigage the Builder and company's name online to make sure there are no complaints.
Negotiate the contract and expect him to be competative.
Obtain several extimates before deciding on any particular builder.
8/30/2010
Home Ownership vs Rental
Top reasons for choosing homeownership over renting has to do with personal comfort.
Being your own Landlord gives you peace of mind and tranquility.
Reducing the principal serves as a savings account.
Monthly expense does not rise with a fixed rate mortgage which helps you manage your expenses.
Choosing your children schools and location allows you to properly plan according to your family's needs.
Deduction of your expenses in your taxes creates savings.
Being your own Landlord gives you peace of mind and tranquility.
Reducing the principal serves as a savings account.
Monthly expense does not rise with a fixed rate mortgage which helps you manage your expenses.
Choosing your children schools and location allows you to properly plan according to your family's needs.
Deduction of your expenses in your taxes creates savings.
8/17/2010
That Time Of Year Again - Back To School
Back to school anxiety and stress for many children and parents is just around the corner. The first day of a new school year can be difficult for children specially if going to school for the first time or changing schools.
Here are some tips to minimize your child's anxiety:
Friends are the number one concern for children starting in a new school. If you have a young child spend the afternoon at a community park in your new school zone and ecnourage your child to play with someone new. This will help making new friends before school starts. If your child is a teen then encourage participation in a school club or an athletic team.
Don't forget to remind your child that many activities will remain the same even when you change school.
Run-through of the school will show your child how to find their classroom, bathroom, and cafeteria. Define the place where you will be waiting to pick them up at the end of the day. With an older child schedule a school tour with the guidance counselor and map out where their classes are located.
However, the most important thing you can do for your child is to show your positive attitude and outlook.
Here are some tips to minimize your child's anxiety:
Friends are the number one concern for children starting in a new school. If you have a young child spend the afternoon at a community park in your new school zone and ecnourage your child to play with someone new. This will help making new friends before school starts. If your child is a teen then encourage participation in a school club or an athletic team.
Don't forget to remind your child that many activities will remain the same even when you change school.
Run-through of the school will show your child how to find their classroom, bathroom, and cafeteria. Define the place where you will be waiting to pick them up at the end of the day. With an older child schedule a school tour with the guidance counselor and map out where their classes are located.
However, the most important thing you can do for your child is to show your positive attitude and outlook.
8/16/2010
Sellers Making Their Home Ready
In today's Buyer's market and current economic conditions sellers must take extra steps to become competative enough to win a sale. With the growing abundance of shortsale and foreclosure homes, where the price points becomes the most important issue for negotiations, the condition of the property may be the single factor to swing the sale your way.
As-Is contacts make home inpsections an extremely important part of the transaction. This one single issue has the potential to make or break your sale. Therefore, sellers must distinguished between cosmetic home improvements and repairs that prevent or correct safety issues. Most buyers will accept cosmetic or inexpensive repairs because of the initial negotiated price reduction. However, when a major expensive potential problem is detected by the home inspection buyers normally walk away.
So make sure you differentiate between cosmetic and safety issues. Cosmetic are issues that items such as painting, cleaning, floor covering, and cabinet hardware among others can readily fix. Safey Issues are items such as major electrical, plumbing and foundation problems.
Some foundation problems are obvious:
cracks
bowing walls
tilting chimneys
windows or doors that are difficult to open or close
Drywall cracks that commence from corners of windows and doors
If you have any of these signs in your home, use an expert to correct the problem before you place your home on the market. If you cannot correct the problem at this time because of the economic condition, then be knowledgable and prepared to deal with the issue of cost once it comes up.
As-Is contacts make home inpsections an extremely important part of the transaction. This one single issue has the potential to make or break your sale. Therefore, sellers must distinguished between cosmetic home improvements and repairs that prevent or correct safety issues. Most buyers will accept cosmetic or inexpensive repairs because of the initial negotiated price reduction. However, when a major expensive potential problem is detected by the home inspection buyers normally walk away.
So make sure you differentiate between cosmetic and safety issues. Cosmetic are issues that items such as painting, cleaning, floor covering, and cabinet hardware among others can readily fix. Safey Issues are items such as major electrical, plumbing and foundation problems.
Some foundation problems are obvious:
cracks
bowing walls
tilting chimneys
windows or doors that are difficult to open or close
Drywall cracks that commence from corners of windows and doors
If you have any of these signs in your home, use an expert to correct the problem before you place your home on the market. If you cannot correct the problem at this time because of the economic condition, then be knowledgable and prepared to deal with the issue of cost once it comes up.
8/10/2010
FHA Helping Upside Down Owners Refinance
Starting September 7, 2010 FHA will launch a program geared to help owners that are:
1. up to date in their mortgage paymnents
2. experiencing an economic hardship
3. upside down on the value of their primary residence
4. do not currently have an FHA loan on their property
5. Have a current credit score of more than 500
Participation in this program will be voluntary on the part of all the current lien holders. The first lien holder must agree to write off at least 10% of the unpaid principal balance of the first mortgage and the second lien holders must agree to a full or partial extinguisment of the liens in return for which the U.S. Department of Treasury will provide incentives.
1. up to date in their mortgage paymnents
2. experiencing an economic hardship
3. upside down on the value of their primary residence
4. do not currently have an FHA loan on their property
5. Have a current credit score of more than 500
Participation in this program will be voluntary on the part of all the current lien holders. The first lien holder must agree to write off at least 10% of the unpaid principal balance of the first mortgage and the second lien holders must agree to a full or partial extinguisment of the liens in return for which the U.S. Department of Treasury will provide incentives.
8/09/2010
Urgent News If You Are Buying Or Selling
New guidelines effective with applications on or after June 1, 2010 affects APR, Good Faith Estimates, Truth in Lending and condo project approvals.
Fannie Mae has issued new lender mandates on a national basis. The intent is to verify that all applicant information is disclosed honestly and remains accurate as of the moment of closing.
Lenders will be required to:
1. Re-pull credit report information just prior to closing
2. Re-verify employment
3. Validate social security numbers
4. Verify intent to occupy
5. Verify that all parties to the transaction have been checked against the national "excluded party" list managed by HUD and by the General Services Administration.
The worst is the credit report for several reasons:
1. Credit report needs to be done as a soft pull so not to affect a credit score by showing an inquiry.
2. Additional credit or increase balances may change the debt-to-income ration more than 2 %. In which case, it will require suspension of loan and resubmittal to underwriting.
3. Any additional delinquencies will result in a new full credit report being pull and re-underwiriting of the loan uitlizing the new credit report.
4. Any and all inquiries from other lenders or credit suppliers must be verified by the credit bureau and certified that new debt did not occur. If new credit has been extended, the new debt must be included in the borrower's debt-to-income ratio and the loan must be re-underwritten.
Other factors affecting the underwritting:
W-2 employees that own more than 25% of a business will be required to provide business returns and cash flow analysis and full disclosure of child support and alimony. Any changes may render the applicant unqualified or delay the closing.
So What Do You Do Now?
1. Be totaly honest while submitting your loan application
2. Do not use your credit cards until after the closing
3. Do not request or accept any new credit
4. Do not change your job
Many loans will go through an immediate qulity control audit post closing. Any loans identified containing fraudulant information will be investigated by the FBI. Any applicant that signs an erroneous initial or final closing application could be committing fraud.
Fannie Mae has issued new lender mandates on a national basis. The intent is to verify that all applicant information is disclosed honestly and remains accurate as of the moment of closing.
Lenders will be required to:
1. Re-pull credit report information just prior to closing
2. Re-verify employment
3. Validate social security numbers
4. Verify intent to occupy
5. Verify that all parties to the transaction have been checked against the national "excluded party" list managed by HUD and by the General Services Administration.
The worst is the credit report for several reasons:
1. Credit report needs to be done as a soft pull so not to affect a credit score by showing an inquiry.
2. Additional credit or increase balances may change the debt-to-income ration more than 2 %. In which case, it will require suspension of loan and resubmittal to underwriting.
3. Any additional delinquencies will result in a new full credit report being pull and re-underwiriting of the loan uitlizing the new credit report.
4. Any and all inquiries from other lenders or credit suppliers must be verified by the credit bureau and certified that new debt did not occur. If new credit has been extended, the new debt must be included in the borrower's debt-to-income ratio and the loan must be re-underwritten.
Other factors affecting the underwritting:
W-2 employees that own more than 25% of a business will be required to provide business returns and cash flow analysis and full disclosure of child support and alimony. Any changes may render the applicant unqualified or delay the closing.
So What Do You Do Now?
1. Be totaly honest while submitting your loan application
2. Do not use your credit cards until after the closing
3. Do not request or accept any new credit
4. Do not change your job
Many loans will go through an immediate qulity control audit post closing. Any loans identified containing fraudulant information will be investigated by the FBI. Any applicant that signs an erroneous initial or final closing application could be committing fraud.
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